What is the minimum monthly Local Advertising Requirement for a Bft franchise, expressed as a dollar amount?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
tion and implementation, 7.7% on media and public relations, and 24.0% for Internet and digital-related activities.
Local Advertising Requirement; Co-Ops
As part of your material obligations under your Franchise Agreement, you must spend the greater of (a) $1,500 or (b) two percent (2%) of Gross Sales each month on marketing and advertising materials (excluding agency and vendor fees) that we approve in connection with the promotion of your Studio within your Designated Territory (your "Local Advertising Requirement"). We may periodically increase your Local Advertising Requirement, subject to the Marketing Expenditure Cap. Upon our request, you must provide us with an accounting of your monthly expenditures associated with your Local Advertising Requirement, along with invoices and other relevant documentation to support those expenditures. Please be advised that the Local Advertising Requirement is only the minimum amount you must spend each month, and we encourage you t
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–50)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees must spend a minimum of either $1,500 or 2% of gross sales each month on local advertising. This advertising must be approved by Bft and is intended to promote the franchisee's studio within their designated territory. The 2% of gross sales or $1,500, whichever is greater, excludes agency and vendor fees.
Bft may periodically increase the Local Advertising Requirement, but this is subject to a Marketing Expenditure Cap. Franchisees are required to provide Bft with an accounting of their monthly advertising expenditures, including invoices and supporting documentation, upon request. While the stated amount is the minimum, Bft encourages franchisees to spend more on local promotion.
It's important to note that this Local Advertising Requirement is separate from the initial marketing requirement of $15,000, which is to be spent on pre-opening sales and promotional activities. The initial marketing expenditure does not count towards the monthly local advertising requirement and is not subject to the Marketing Expenditure Cap. Franchisees should budget accordingly to meet both the initial and ongoing advertising obligations.